Average Monthly Volume

Average monthly volume (AMV) measures the total dollar amount of transactions a merchant processes each month, averaged over a set period.

This figure is pivotal in the payments industry. It helps banks and payment processors gauge a merchant's level of transaction activity, which is important for a number of reasons.

AMV helps financial institutions assess business risk, set processing rates, and determine necessary account reserves. Plus, merchants with higher AMVs are often seen as more established. This might qualify them for more favorable transaction fees. Keeping an eye on AMV not only helps merchants secure better terms but also assists in smoothly managing their payment operations.